OMAHA (DTN) -- As has been the case for the last several weeks now, average retail fertilizer prices continued to be just slightly lower the fourth week of July 2016, according to fertilizer retailers surveyed by DTN.
All eight of the major fertilizers dipped in price compared to the previous month, but once again none were down by any significance. DAP averaged $459 per ton, MAP $492/ton, potash $356/ton and urea also at $356/ton. 10-34-0 was at $543/ton, anhydrous $545/ton, UAN28 $257/ton and UAN32 $304/ton.
On a price per pound of nitrogen basis, the average urea price was at $0.39/lb.N, anhydrous $0.33/lb.N, UAN28 $0.46/lb.N and UAN32 $0.48/lb.N.
The ongoing lowering fertilizer prices have an effect not only on farmers but also on the profitability of fertilizer companies. Mosaic announced recently that their second quarter will have a loss, although the company sees brighter days ahead as prices of its crop nutrients "bottom" and demand stays solid, according to Dow Jones.
Mosaic expects increased shipments of phosphates, its biggest segment by sales, to boost profitability in that business in the second half of 2016. In addition, expected near-record use of fertilizer by Brazilian farmers this year adds to the brighter outlook, the article reported.
According to Mosaic CEO Joc O'Rourke, soft U.S. crop prices weigh on the North American Grain Belt, but overall, "fertilizer is very affordable" for farmers now. U.S. farmers are projected to harvest a record corn crop this year and "higher yields means higher fertilizer removal from the soil, which tends to drive higher demand," O'Rourke said.
For the time being, DTN's retail fertilizer prices remain lower compared to a year earlier. All fertilizers are now double digits lower.
UAN32 is 14% lower, 10-34-0 is 15% less expensive and MAP 17% lower. DAP is 19% lower and both anhydrous and UAN28 are 21% less expensive. Urea is 24% less expensive and potash is 27% less expensive compared to last year.
DTN collects roughly 1,700 retail fertilizer bids from 310 retailer locations weekly. Not all fertilizer prices change each week. Prices are subject to change at any time.
DTN Pro Grains subscribers can find current retail fertilizer price in the DTN Fertilizer Index on the Fertilizer page under Farm Business.
Retail fertilizer charts dating back to November 2008 are available in the DTN fertilizer segment. The charts included cost of N/lb., DAP, MAP, potash, urea, 10-34-0, anhydrous, UAN28 and UAN32.
DTN's average of retail fertilizer prices from a month earlier ($ per ton):
|July 27-31 2015||569||594||487||469|
|Aug 24-28 2015||567||586||476||447|
|Sept 21-25 2015||562||575||454||428|
|Oct 19-23 2015||547||562||435||413|
|Nov 16-20 2015||545||559||424||403|
|Dec 14-18 2015||532||544||410||392|
|Jan 11-15 2016||495||521||391||381|
|Feb 8-12 2016||479||499||378||369|
|Mar 7-11 2016||477||494||372||378|
|Apr 4-8 2016||480||504||369||387|
|May 2-6 2016||475||502||366||385|
|May 30-June 3 2016||473||499||363||375|
|June 27-July 1 2016||468||495||358||365|
|July 25-29 2016||459||492||356||356|
|July 27-31 2015||636||689||324||354|
|Aug 24-28 2015||609||667||309||350|
|Sept 21-25 2015||589||646||297||343|
|Oct 19-23 2015||582||637||291||334|
|Nov 16-20 2015||579||629||287||332|
|Dec 14-18 2015||571||612||279||331|
|Jan 11-15 2016||572||581||272||319|
|Feb 8-12 2016||569||551||261||303|
|Mar 7-11 2016||562||541||262||312|
|Apr 4-8 2016||561||586||272||315|
|May 2-6 2016||560||589||274||321|
|May 30-June 3 2016||559||579||268||313|
|June 27-July 1 2016||554||566||266||304|
|July 25-29 2016||543||545||257||304|
Russ Quinn can be reached at email@example.com
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